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Business

Analyst Meredith Whitney: “The crisis with the states will result in an attempt at least for the third near-trillion-dollar bailout. Municipal debt has doubled since 2000, spending has grown way faster than revenues. 80,000 Jobs in the financial sector will be lost this year.”

With news about the possible imminent collapse or possible breakthrough of Middle East peace talks swarming all forms of media, the issue of the booming Israeli economy, the seeming success of the Givot Olam (GIVO.L) oil company, and the finding of even more natural gas off the coast of Haifa is being almost entirely overlooked. Regarding Israel’s finances, the chairman of the Bank of Israel, Stanley Fischer, was just given an A by Global Finance magazine for his steering of Israel’s economy through one of the most dangerous periods in economic history since just before the Great Depression. Chairman of the US Federal Reserve, Ben Bernanke received a C in contrast.

The Gevaot drilling company is trying for a fifth time to unearth the motherload. Investors look on to the burning torch hoping that their ticket to early retirement is bubbling somewhere beneath the surface. They quote the Torah, believing in a miracle. Gevaot is updating constantly.

Walla, Israel’s number 2 internet site behind Ynet, announced today (Sunday) that it will acquire 75% of the Korel Tal company, which currently controls the Yad2 internet site, in return for NIS117.5 million. Yad2 is Israel’s leading online classifieds section, offering real estate, motor vehicles, furniture, and other items. The deal is worth about NIS156 million to Yad2. According to the acquisition deal, Walla will gain control of the site as well as 42.5% of Kama, the leading Israeli site for internet price comparison.

Italy’s Prime Minister Silvio Berlusconi and his government have been calling for a vote of confidence in the Italian Parliament in the last several days for unpopular austerity measures totaling €25 billion. Roger Bootle and his economic staff at Capital Economics are asking themselves if Italy constitutes a credible danger to the Euro Block.

It is a well known fact that Israel is one of the most important and largest diamond centers in the world. In addition to its status as a leading polishing center, the Israeli Diamond Industry has developed into an international trade center through which rough and polished diamonds pass regularly. In fact, The United States, the world’s largest market for polished diamonds, imports over half of its polished diamonds from Israel.

Apparently not all the Turks are happy with Erdogan’s moves against his former ally, Israel. Apparently a Turkish construction firm operating in Israel for the last 16 years is taking the their own government to court for allegedly ruining their business in the Jewish State.

Chairman of the Bank of Israel, Professor Stanley Fisher, referred to the toughening of conditions for getting a mortgage, which the Bank of Israel itself ordered. “It’s not the best way to influence the market, but at least in this way we can prevent a sharp rise in housing prices, which is already in a bubble for all intents and purposes. We wanted to help the housing markets and stability in the banking system. We will continue to do everything required in order to prevent a quick rise in housing prices.”

In the background of Israel pushing for harder paralyzing sanctions against Iran, the Jerusalem Post revealed Sunday that a law passed in 2008 forbidding Israelis from investing in companies that do direct business with Teheran, sponsored by then opposition leader Benjamin Netanyahu, has never actually been implemented. When the law was passed, Kadima MK Ronnie Bar-On was acting finance minister, but did nothing to actually implement the bill into practice. Neither did current finance minister Yuval Steinitz, though he has recently begun taking measures to activate it.The bill, in theory, prevents Israeli financial institutions and insurance firms from investing in companies that work with Iran, thereby making Israeli divestment from Iran complete up to the second degree of separation.Bar-On was then authorized to name a committee chairman who would take measures to implement the bill, but that never actually happened. The committee was supposed to be made up of two appointees from the PMO, one from the Foreign, Defense, and Industry Trade and Labor Ministries, one from the Securities Authority, and one from the Authority against Money Laundering.